Michael Nathanson 2.9 2 ideas

Nathanson explicitly holds a "Buy rating on Meta" with an "$810 price target." He notes that the market tends to "ignore all the fines and penalties" because the business model is "so strong and so profitable." The legal noise and emotional testimony do not alter the financial mechanics of the company. Section 230 provides immunity, and the market treats regulatory fines as non-recurring expenses, leaving the core valuation thesis intact. Long positions remain justified by fundamentals despite negative PR and litigation. Federal government changes to Section 230 or significant changes in liability laws.

Nathanson points out that "Snap's been warning that they're seeing slower user growth" specifically because of age usage limits and bans in markets like Australia, Spain, and the UK. Unlike the diversified giants, smaller platforms are more sensitive to regulatory friction. The "wave of cases" and international restrictions are already materially impacting Snap's user acquisition and growth metrics. Avoid due to visible regulatory drag on growth that is not affecting larger peers to the same degree. Successful pivot to new demographics or relaxation of international age-gating laws.